Colorado Springs, CO Accessory Structures: ADU Rental Restrictions (2026)

Long-term rental (30 days or more) of an ADU is permitted in Colorado Springs without owner occupancy under UDC § 7.4 in most residential zones. Short-term rentals (under 30 days, e.g., Airbnb, VRBO) are tightly regulated under City Code § 7.5.1206 (adopted 2019, amended 2023). The ordinance distinguishes between Owner-Occupied STRs (where the operator's primary residence is on-site, allowed in most R districts with a permit) and Non-Owner-Occupied STRs (treated as commercial use, restricted by zone). The City Council froze new Non-Owner-Occupied STR permits in most residential zones in 2021 and maintains a 500-foot dispersal rule preventing new permits within 500 ft of an existing one. An ADU operated as a standalone STR while the owner does not live on-site typically falls in the Non-Owner-Occupied category and cannot receive a new permit in most R districts. An ADU operated as an Owner-Occupied STR — where the owner lives in the principal dwelling and rents the ADU short-term — remains permitted subject to annual STR registration ($150–$250), sales tax license, lodgers tax collection (8.63% combined), and safety inspections. The El Paso County unincorporated areas have separate, generally less restrictive STR rules under County land-use code.